Invictus Energy, the company spearheading an ambitious oil and gas project in northern Zimbabwe says the Mutapa Investment Fund (MIF) recent US$5 million capital injection into the project will go a long way in turning around the country's fortunes.
Last year, Invictus offered 151,515,152 shares worth US$10 million in a private placement out of which the MIF opted to underwrite US$5 million worth of the share issue while a private equity fund, Mangwana Capital injected another US$5 million to acquire the total shares on offer.
MIF will represent the government's stake in the gas project on the back of yet another ongoing discussion on a Petroleum Production Sharing Agreement outlining how dividends will be spread between the concern and the government.
According to the arrangement, the country's Sovereign Wealth Fund will be granted a 10% back-in-right within six months of a final investment decision being made to go ahead with any commercial development. A back-in-right contract allows the government to take shares in the operation.
In a report for the quarter ended December 31 2024 published this week, Invictus Energy announced said the investments by the two local firms were successfully completed during the period.
Tranche One of the placement partially underwritten by MIF was successfully completed in August 2024 while Tranche Two of the US$10 million Institutional Placement managed by Mangwana Capital was completed on December 31 2024.
Invictus Energy Managing Director Scott Macmillan said, "The completion of this strategic capital raise is a testament to the strong investor confidence in our Cabora Bassa Project and its potential to drive transformative growth in Zimbabwe's energy landscape. We are grateful for the enduring and overwhelming local and institutional support.
With the capital secured, we are equipped to accelerate the next phase of our exploration and development activities at the Cabora Bassa Project. We remain committed to delivering long-term value for our shareholders and contributing to Zimbabwe's energy independence and economic growth."
The company also believes that this strategic investment is historic for both Invictus and investors in Zimbabwe, who can now hold and trade securities in the Company through its secondary listing on the Victoria Falls Stock Exchange.
